Nike has reported a decline in sales over the past three months and is warning of more setbacks to come. Sales of lifestyle items and classic sneakers such as the Air Force 1 have decreased more than anticipated. Additionally, sales in China have significantly dropped.
The global revenue for the past three months amounted to over $12.6 billion, compared to $12.8 billion the previous year. Disappointing sales were seen particularly in lifestyle clothing and classic sneaker models. Nike’s subsidiary brand Converse also saw a decline, with sales dropping by 18%.
Despite positive sales in basketball apparel and running shoes, the overall picture remained bleak. Sales fell short of expectations in almost every region, especially in North America and China, where the quarter performed much worse than anticipated.
Analysts attribute Nike’s challenges to a lack of innovation in its designs, allowing other brands to gain market share. The company is hoping that athletes wearing its shoes at the Olympic Games will boost sales.
The outlook for the current quarter is also less optimistic, with sales expected to drop by another 10%, partly due to challenging conditions in China.